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Home Business After clean tech's pullback, Raymond James believes these names offer upside

After clean tech’s pullback, Raymond James believes these names offer upside

Wind generators spin throughout a winter storm close to Palm Springs, California, March 10, 2021.

Mike Blake | Reuters

The first-quarter decline in clean know-how shares is a “normal, healthy pullback” and presents a possibility for traders, stated Raymond James in a analysis be aware.

“If you missed the boat in 2020, a chance to get in,” wrote analyst Pavel Molchanov within the be aware to shoppers.

After gaining greater than 200% throughout 2020 the WilderHill Clean Energy Index, which tracks the house, dipped practically 5% in the course of the first quarter. The S&P 500, however, gained 6%.

“To state the obvious, nothing goes up in a straight line. More to the point, plenty of the names had been in overbought territory…and some profit-taking was emphatically to be expected,” the Raymond James be aware stated.

The agency pointed to a number of causes behind the declines, together with a rotation away from growth-oriented areas of the market.

Looking ahead, whereas Raymond James does see upside for the trade, the agency reiterated that clean tech is a inventory picker’s market. In different phrases, the sector should not be purchased as a complete. Rather, traders ought to consider firms on a person foundation.

Key components to think about embrace product combine, margin construction and geographic footprint. The agency famous that for some names throughout the trade, the just lately unveiled $2 trillion infrastructure plan might be the “icing on the cake” for already strong progress tales.

With that in thoughts, listed here are a few of Raymond James’ picks:

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Updated on April 13, 2021 12:11 am

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